System and method for transferring value to a magnetic stripe on a transaction card

US6510983B2 · kind B2 · utility

Assignee

• Citicorp Development Center, Inc. · US

Inventors

• Edward Horowitz · Short Hills, US
• Joseph C. Kawan · West Hollywood, US
• Henry Lichstein · Santa Monica, US

Key dates

• Filing date: Jul 2, 1998
• Grant date: Jan 28, 2003
• Expiry date: Jul 2, 2018

Classification

• Technology area (CPC G): Physics
• CPC primary: G07F9/002
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

The present invention discloses a system and method enabling value stored in an advanced technology memory on a transaction card to be utilized in a magnetic stripe transaction with the card. The invention provides a special transaction number that is encrypted and recorded on the magnetic stripe of the card. The special transaction number comprises the value to be transferred or transaction amount, a personal identification number (“PIN”), and an account number. The special transaction number is recorded in a non-discretionary data field. Further, an indicator character may also be recorded on the magnetic stripe to alert a host system of a financial institution of the existence of the special transaction number. Thus, the special transaction number is read during a magnetic stripe transaction and the value represented by the special transaction number may be utilized to perform the transaction.